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Price Signal Summary - Bear Threat In Gilts Remains Present

OUTLOOK
  • In the FI space, Bund futures maintain a softer short-term tone. A deeper retracement would highlight a stronger bearish threat and the end of the recent corrective phase between Mar 18 - 27. The bear trigger lies at 131.23, the Feb 29 low. Clearance of this level would confirm a resumption of the downtrend that started last December. On the upside, a break of 133.48, the Mar 27 high, is required to reinstate a bullish theme.
  • The gap lower on Tuesday in Gilt futures and the subsequent sell-off, highlights a developing bear threat. A continuation lower would signal scope for a test of key short-term support at 98.05, the Mar 15 low. Clearance of this level would strengthen a bearish theme. On the upside, key resistance and the bull trigger is unchanged at 100.37, the Mar 12 high. Initial resistance is at 99.332, the Apr 2 high.
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  • In the FI space, Bund futures maintain a softer short-term tone. A deeper retracement would highlight a stronger bearish threat and the end of the recent corrective phase between Mar 18 - 27. The bear trigger lies at 131.23, the Feb 29 low. Clearance of this level would confirm a resumption of the downtrend that started last December. On the upside, a break of 133.48, the Mar 27 high, is required to reinstate a bullish theme.
  • The gap lower on Tuesday in Gilt futures and the subsequent sell-off, highlights a developing bear threat. A continuation lower would signal scope for a test of key short-term support at 98.05, the Mar 15 low. Clearance of this level would strengthen a bearish theme. On the upside, key resistance and the bull trigger is unchanged at 100.37, the Mar 12 high. Initial resistance is at 99.332, the Apr 2 high.